Lowe's Companies (NYSE: LOW) and Travis Perkins (OTCMKTS:TVPKF) are both retail/wholesale companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.
Lowe's Companies pays an annual dividend of $1.64 per share and has a dividend yield of 1.9%. Travis Perkins does not pay a dividend. Lowe's Companies pays out 37.4% of its earnings in the form of a dividend. Lowe's Companies has raised its dividend for 55 consecutive years.
73.8% of Lowe's Companies shares are owned by institutional investors. 0.1% of Lowe's Companies shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares Lowe's Companies and Travis Perkins’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Lowe's Companies||$68.62 billion||1.05||$3.45 billion||$4.39||19.69|
|Travis Perkins||$8.43 billion||0.58||$17.21 million||$1.61||12.11|
Lowe's Companies has higher revenue and earnings than Travis Perkins. Travis Perkins is trading at a lower price-to-earnings ratio than Lowe's Companies, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings for Lowe's Companies and Travis Perkins, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Lowe's Companies presently has a consensus target price of $98.36, suggesting a potential upside of 13.81%. Given Lowe's Companies’ higher probable upside, research analysts plainly believe Lowe's Companies is more favorable than Travis Perkins.
This table compares Lowe's Companies and Travis Perkins’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
Lowe's Companies has a beta of 1.32, indicating that its share price is 32% more volatile than the S&P 500. Comparatively, Travis Perkins has a beta of 0.62, indicating that its share price is 38% less volatile than the S&P 500.
Lowe's Companies beats Travis Perkins on 14 of the 15 factors compared between the two stocks.
Lowe's Companies Company Profile
Lowe's Companies, Inc. operates as a home improvement company in the United States, Canada, and Mexico. It offers a line of products for maintenance, repair, remodeling, and decorating. The company provides home improvement products in various categories, such as lumber and building materials, tools and hardware, appliances, fashion fixtures, rough plumbing and electrical, seasonal living, lawn and garden, paint, millwork, flooring, kitchens, outdoor power equipment, and home fashions. It also offers installation services through independent contractors in various product categories; extended protection plans; and in-warranty and out-of-warranty repair services. The company sells its national brand-name merchandise and private branded products to homeowners, renters, and professional customers; and retail customers comprising individual homeowners and renters. As of March 24, 2017, it operated 2,365 home improvement and hardware stores. The company also sells its products through online sites comprising Lowes.com and Lowesforpros.com; and through mobile applications. Lowe's Companies, Inc. was founded in 1946 and is headquartered in Mooresville, North Carolina.
Travis Perkins Company Profile
Travis Perkins plc operates as a builder?s merchant and home improvement product retailer in the United Kingdom. The company?s General Merchanting division supplies building materials for various types of repair, maintenance, and improvement projects, as well as new residential and commercial constructions. It serves sole traders and national housebuilders under the Travis Perkins and Benchmarx brands. This division also supplies kitchens and joinery products to specialist joiners, local authorities, and house builders. Its Contracts division supplies civils, heavy building materials, and drainage solutions to trade professionals and specialist contractors; drywall solutions, insulation products, interior partitions, and external rendering and cladding products to the dry lining, insulation installer, and internal fit out contractors; and pipeline, heating, and mechanical services equipment. This division offers its products under the Keyline, BSS, and CCF brands. The company?s Consumer division supplies domestic building and decorative materials to DIY and trade customers. This division?s brands include Wickes, Toolstations, and Tile Giant. Its Plumbing & Heating division supplies plumbing, heating, and bathroom products to plumbers, independent merchants, large plumbing contractors, and local authorities. It also supplies hand tools, clothing, and site equipment; and distributes renewables technology, as well as provides integrated solutions for low carbon construction, energy efficient buildings, and renewable energy projects. This division offers its products primarily under its iflo brand name. Travis Perkins plc sells its products through its stores, as well as through online. The company was formerly known as Sandell Perkins Public Limited Company and changed its name to Travis Perkins plc in October 1988. Travis Perkins plc was founded in 1797 and is headquartered in Northampton, the United Kingdom.
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